There were no apologies for absence.

There were no disclosures of interest.

The minutes of the meeting held on 29 November 2011 to be submitted and signed.  (All minutes are available on the Council’s website.)

The minutes of the meeting held on 29 November 2011 were submitted and signed.

Report of the Head of Strategic Finance

This report follows on from the previous report to the Budget Panel in November and reviews the current levels of income received by the parking service and analyses the potential draw down on the Parking Reserve.

The Panel received a report of the Heads of Planning and Strategic Finance which followed on from the previous report presented to Budget Panel in November.  It asked Members to consider increasing charges for parking permits.  The Panel’s comments would be presented to Cabinet at its meeting on 16 January.

A Member informed the Panel that following receipt of the report he had approached officers for other scenarios.  He advised that if the first permit was increased to £25 from £20, this would raise £21,740 additional income.  If the second permit was raised from £30 to £60, this would raise an approximate additional income of £28,000.  This would total approximately £50,000.  He added that there were other scenarios which would provide additional income.  He cautioned that the Council needed to be careful how the additional income was spent.

A Councillor, who was not a member of the Budget Panel, questioned where the reserves had been spent.  He said that two or three years ago there was over £900,000 in the reserves.  He asked where £500,000 had been spent.  He also questioned why officers had not raised this problem before.  Residents were now expected to face heavy increases.

A Member stated that he had asked for quantifiable data regarding the cost of the Cassiobury parking scheme and what lessons had been learnt from its introduction.  He said that the cost of the scheme could have had an impact on other areas which needed schemes and the schemes could be delayed.

A Member said that he had listened to the Head of Planning and read the report.  It was clear there was a downward trend in the net income.  He stated that it was important that the basic principle of this budget was adhered to.  The operation of the Controlled Parking Zones and other parking restrictions should be cost neutral and not subsidised by Council Tax.  He did not agree that charges should be increased by an average of 40%.  He questioned whether there was any need for an increase in the proposed budget.  He had noted that the CPZ Reserve was still in surplus and had not been fully depleted.  The income had decreased considerably over the last few years.  He was not convinced that this was only because people were more compliant.  He suggested that the contract with Vinci should be reviewed and put on a performance basis.

Councillor Derbyshire moved that –

“Resolved:

1.      The Panel endorses Council policy that the operation of CPZs and other parking restrictions in Watford should be cost neutral and without subsidy, with the costs being met from fines, pay and display income and permit fees.

2.      The Panel recommends that for 2012/13 the charges for CPZ resident permits should remain unchanged.

3.      The Panel recommends that the parking management agreement with Vinci should be reviewed at the earliest opportunity, with consideration being given to it becoming performance based.”

The Chair invited the Head of Planning to respond to the points raised by the  ...  view the full minutes text for item 43.

Report of the Head of Strategic Finance

This item includes the report and appendices to be considered by Cabinet on 16 January 2012 relating to revenue and capital estimates.

The Panel received a report of the Head of Strategic Finance incorporating the draft report and appendices which would be presented to Cabinet at its meeting on 16 January.  A final version of the report and amended Appendices 7A, 7B, 8A and 8B were circulated to Budget Panel prior to the meeting.

The Head of Strategic Finance referred Members to the Revenue Support Grant settlement which was the same as the figures indicated by the Secretary of State the previous year.  It was also confirmed that the Council would receive £1,516,000 New Homes Bonus.  It would be necessary to discuss how this should or could be spent.

The Head of Strategic Finance advised that Members had not been provided with the complete Budget Book as the majority of budgets would remain unchanged.  Budget Panel and Cabinet had, throughout the year, continued to monitor the proposed savings identified through the Service prioritisation process.  Cabinet had approved amendments as required.  Appendix 3 attached to the Cabinet report showed a further shortfall in the Service Prioritisation process of £165,000 in 2012/2014.  This had not previously been reported but was being drawn to Members’ attention through this report.  Members were asked to comment on the shortfall.

Following a Member’s question about the shortfall the Head of Strategic Finance advised that this was explained in Appendix 3.  Each item needed to be considered individually.

A Member referred to the saving projection related to Licensing.  He said that it was necessary to consider the implications for the Town Centre.  It was important to support businesses and tackle anti-social behaviour.  He asked whether officers had investigated raising all achievable revenue from pubs and clubs.

The Head of Strategic Finance explained that this information had been supplied by the Head of Environmental Services.  It would be possible to find out more detail and circulate it to Budget Panel. 

The Portfolio Holder added that the Head of Service had not yet reported to Corporate Management Board.  The Board would either confirm the service’s proposals or ask for amendments.

Another Member said that he was also frustrated that the Council was unable to raise income from the pubs and clubs.  Councils should be able to charge appropriate fees to cover costs for policing and other required services.

A Member informed the Panel that the Licensing Committee had recently been informed about new legislation which was passing through Parliament.  If agreed it would enable local authorities to raise income through a late night levy.  If it were considered for introduction it would also be important to look at the impact on businesses in the town. 

The Head of Strategic Finance then referred Members to revenue growth additions to the base budget as shown in Appendix 4. 

A Member said that it was difficult to question the growth items as the Head of Service was not present.  In total they were a considerable amount when compared to the revenue.  He questioned the requirement for additional temporary staff in the Property Team.

A  ...  view the full minutes text for item 44.

Report of the Head of Strategic Finance

This report informs the Budget Panel of the reported budgetary variances as at end of November 2011.

The Panel received a report of the Head of Strategic Finance including the latest Finance Digest as at the end of period 8. 

Members referred to the negative variance for Legal and Property Services.  The Head of Strategic Finance advised that the full details were included in Table 2 in the Appendix.

RESOLVED –

that the Finance Digest as at the end of period 8 be noted.

·               Wednesday 8 February 2012

·               Wednesday 8 February 2012